Overview

Malaysia’s  labour  productivity  in  the  fourth  quarter  of  2019  as  measured  by  value  added  per hour worked, rose 1.5 per cent (Q3 2019: 2.6%). During this quarter, Malaysia’s economy posted a growth of 3.6 per cent (Q3 2019: 4.4%) while hours worked increased 2.1 per cent after registering an increase of 1.7 per cent in the previous quarter. Meanwhile, labour productivity expressed in terms of value added per employment grew 1.4 per cent (Q3 2019: 2.3%) as employment increased 2.2 per cent (Q3 2019: 2.1%). In terms of labour productivity level, value added per hour worked in Q4 2019 was RM42 per hour (Q3 2019: RM41) while value added per employment was RM24,247 per person (Q3 2019: RM23,752). Overall for 2019, Malaysia’s labour productivity by value added per hour worked rose 2.2 per cent (2018: 3.4%) with labour productivity level of RM41 per hour (2018: RM40). Nevertheless, growth of labour productivity by value added per employment sustained at 2.2 per cent (2018: 2.2%) with a level of RM93,909 per person (2018: RM91,932).

Labour  productivity  by  hours  worked  for  Agriculture  sector  posted  a  negative  growth  of  5.8  per  cent in Q4 2019 (Q3 2019: 1.8%). Value added of this sector contracted 5.7 per cent (Q3 2019: 3.7%) while hours worked went up 0.2 per cent (Q3 2019: 1.9%). Labour productivity by value added per employment for this sector declined 6.2 per cent (Q3 2019: 2.0%) with employment increased 0.5 per cent (Q3 2019: 1.7%). Value added per hour worked for Agriculture sector was RM25 per hour in Q4 2019 (Q3 2019: RM28) while value added per employment was RM13,177 per person (Q3 2019: RM14,811). Overall for 2019, Agriculture’s labour productivity by value added per hour worked increased 0.2 per cent (2018: 0.6%) with a level of RM26 per hour (2018: RM26) while labour productivity by value added per employment posted a growth of 0.2 per cent (2018: -0.2%) with level of RM54,072 per person (2018: RM53,949).

Mining  and  Quarrying  sector  recorded  a  smaller  decline  of  0.3  per  cent  (Q3 2019: -3.4%)  for labour productivity by  hours  worked. During this quarter, value added of  this  sector continued  to  decline  with  a  rate  of  negative  2.5  per  cent  (Q3 2019: -4.3%) while hours worked continued to decline at a rate of negative 2.2 per cent (Q3 2019: -1.0%). In the meantime, labour productivity measured as value added per employment dropped 3.2 per cent (Q3 2019: 5.4%) while employment increased 0.7 per cent (Q3 2019: 1.1%). In terms of level of labour productivity, value added per hour worked in Q4 2019 for Mining and Quarrying sector was RM615 per hour (Q3 2019: RM476) while value added per employment was RM380,290 per person (Q3 2019: RM289,868). For year 2019, annual growth of labour productivity by value added per hour worked contracted 1.2 per cent (2018: 2.9%) with labour productivity level of RM549 per hour (2018: RM556) while growth of labour productivity by value added per employment declined 1.1 per cent (2018: -6.7%) with a level of RM1,346,030 per person (2018: RM1,361,470).

The growth of labour productivity, value added per hour worked for Manufacturing sector grew modestly at 1.2 per cent (Q3 2019: 2.9%). The value added of this sector expanded 3.0 per cent after registering 3.6 per cent in the preceding quarter while hours worked went up 1.8 per cent (Q3 2019: 0.8%). The highest growth of labour productivity by hours worked in Manufacturing sector was recorded by Transport equipment, other manufacturing & repair (4.5%). This was followed by Petroleum, chemical, rubber & plastic products and Wood products, furniture, paper products & printing which grew 3.9 per cent respectively. Meanwhile,  labour  productivity  expressed  as  the  ratio  of  value added to employment grew at a slower rate of 0.8 per cent (Q3 2019: 1.6%) as employment increased 2.3 per cent (Q3 2019: 2.0%). Value added per hour worked for this sector  was  RM53  per  hour  in  Q4 2019  (Q3 2019: RM52)  while  value added per employment was RM31,582 per person (Q3 2019: RM31,349). Overall in 2019, the growth of labour productivity expressed as value added per hour worked increased 2.5 per cent (2018: 3.3%) with a level of RM52 per hour (2018: RM50) while labour productivity measured as value added per employment recorded a growth   of 1.7  per  cent  (2018: 2.4%) with labour productivity level of RM123,909 per person (2018: RM121,862).

Labour  productivity  by hours  worked  for Construction sector increased 4.3 per cent in Q4 2019 (Q3 2019: 1.6%). The  growth  of  value  added  in  this  sector was 1.0 per cent  (Q3 2019: -1.5%)  while  hours  worked  decreased  at  3.2  per  cent  (Q3 2019: -3.1%). Measuring labour productivity by value added per employment, this sector posted a growth of 3.1 per cent (Q3 2019: 2.1%) while employment dropped 2.1 per cent (Q3 2019: -3.5%).  In terms of level of labour productivity, value added per hour worked of this sector in Q4 2019 was RM19 per hour (Q3 2019: RM20) while value added per employment was RM11,106 per person (Q3 2019: RM11,782). In 2019,  Construction’s labour productivity, value added per hour worked increased 3.4 per cent (2018: 3.8%) with labour productivity level of RM19 per hour (2018: RM18) while labour productivity, value added per employment grew 3.2 per cent (2018: 3.4%) with a level of RM45,284 per person (2018: RM43,875).

Services   sector   posted   a   growth  of   labour   productivity  in  terms  of  value  added   per  hour  worked  at   2.5  per  cent (Q3 2019: 2.9%). Value added of this sector expanded 6.1 per cent (Q3 2019: 5.9%) while hours worked increased 3.5 per cent (Q3 2019: 2.8%). During this quarter, the highest growth of labour productivity by hours worked in Services sector was recorded by Transportation & storage (4.6%). This was followed by Real estate & business services (4.2%) and Wholesale & retail trade (3.2%).   Measuring   labour   productivity   by  value  added   per  employment,   this   sector  recorded  an  increased   of   2.8 per cent (Q3 2019: 2.7%) while employment rose 3.2 per cent (Q3 2019: 3.1%). Level of labour productivity which measured as value added per hour worked was RM40 per hour in Q4 2019 (Q3 2019: RM39) while value added per employment was RM23,439 per person (Q3 2019: RM22,622). For the year 2019, Services’s labour productivity expressed as value added per hour worked moderated to 2.7 per cent (2018: 5.0%) with a level of RM38 per hour (2018: RM37) while labour productivity by value added per employment grew 2.9 per cent (2019: 3.5%) with labour productivity level of RM89,420 per person (2018: RM86,922).

Released By:

DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
 DrUzir_Mahidin    Dr_Uzir

20 February 2020

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